Mindtree Q4 net profit jumps 49% to Rs 473 crore

NEW DELHI: IT company Mindtree on Monday said it has registered a 49.1 percent jump in its consolidated net profit at Rs 473.1 crore in the fourth quarter of FY22 compared to the year-ago period. The company had recorded a net profit of Rs 317.3 crore in the same period of the previous fiscal.

Mindtree’s consolidated revenue from operations grew by 37.4 percent to Rs 2,897.4 crore during January-March 2022 from Rs 2,109.3 crore in the corresponding quarter of 2020-21. For the financial year 2021-22, consolidated net profit of Mindtree grew by 48.8 percent to Rs 1,652.9 crore from Rs 1,110.5 crore at the end of financial year 2020-21. The consolidated revenue of Mindtree rose to 10,525.3 crore at the end of 2021-22 from Rs 7,967.8 crore a year ago.

“Our full year revenue growth of 31.1 percent validates our strategy to capitalise on rising demand by diversifying our services portfolio, mining customers, and broadening industry partnerships. We are proud to have delivered an EBITDA margin of 20.9 percent and PAT margin of 15.7 per cent, our highest in a decade,” Mindtree chief executive officer and managing director Debashis Chatterjee was quoted as having said in a statement.

During the company’s earnings call, Chatterjee said a full year dividend of Rs 37 per share announced by the company is the highest in its history. About the possibility of the company’s merger with L&T Infotech, he said it is a speculation.

Talking about the impact of the global geopolitical situation on business from Europe, Chatterjee said that the company doesn’t see any significant softness in business from the region in near term, and it is also scaling up development centres located there. North America accounted for 76.6 per cent of Mindtree’s revenue during the March 2022 quarter with growth of 28 per cent year-on-year.

While only 7.1 percent of Mindtree revenue came from Europe, it was the highest growth region for the company with 69.2 percent year-on-year increase in business. Attrition at the company during the reported quarter increased to 23.8 percent. “Attrition continues to be an industry-wide issue. We expect the situation to gradually stabilise over next two quarters and eventually come down,” Chatterjee said.

Communications, media and technology were the biggest revenue earners for the company with 45.8 per cent share in the overall pie during the reported quarter. Chatterjee also said that Mindtree ended the year with an order book of $1.6 billion, up by 16.7 per cent year-on-year.

“We are increasing investment in metaverse solutions and capabilities to extend our design thinking leadership into an integrated consulting-led metaverse offering,” he added.